REG - WH Smith PLC - Trading Statement

WH SmithAnnouncement

29/01/2025 07:00

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RNS Number : 0077V  WH Smith PLC  29 January 2025

29 January 2025

 

WH Smith PLC

 

The global travel retailer

 

Ahead of its Annual General Meeting, the Company announces its trading update

for the 21 week period to 25 January 2025

 

Good start to the financial year with strong growth across all Travel
divisions.

Acceleration in like-for-like revenue in North America

 

Commenting on today's announcement, Carl Cowling, Group Chief Executive said:

 

"The Group has had a good start to the financial year, and we continue to see
strong momentum across our core Travel business.

 

"Our UK Travel business has delivered another excellent performance across all
channels, as we continue to make good progress with the rollout of our
one-stop-shop for travel essentials format.

 

"In North America, we have seen a notable shift in like-for-like revenue
growth, up 3%, as a result of the actions we have taken to enhance our ranges
and introduce new categories. We are also delighted to announce that we have
won 8 stores at Orlando airport, further to our announcement in November and,
more recently, a further 4 stores at Portland airport.  We now have a new
store pipeline of c.60 stores in North America.

 

"I would like to thank our colleagues across the Group who go above and beyond
to serve the millions of customers that shop with us.

 

"The Group is in a strong position, and while there is some economic
uncertainty, we are confident of another year of good growth in 2025."

 

Trading Update

 

The Group has delivered a good performance over the 21 week period with total
Group revenue up 4% on a constant currency basis, compared to the prior year.
Across our global Travel divisions, we have seen strong momentum since the
start of the financial year with revenue up 8% on 2024 on a constant currency
basis. Our UK High Street division delivered a performance in line with our
expectations.

 

                    Revenue 21 Weeks to 25 January 2025
                    Total         Total constant currency versus 2024  LFL(1)

                    versus                                             versus

                    2024                                               2024
 UK                 7%            7%                                   7%
 North America      3%            6%                                   3%
 Rest of the World  12%           16%                                  9%

 Total Travel       7%            8%                                   6%

 High Street(2)     (6)%          (6)%                                 (3)%

 Group              3%            4%                                   3%

( )

(1) Constant currency

(2) Includes internet businesses

 

Travel UK

 

In Travel UK, our largest division, total revenue in the 21 week period was up
7% and also up 7% on a LFL basis, further building on the strong growth of the
prior year. We continue to identify opportunities to roll out our
one-stop-shop for travel essentials format and we are seeing good results from
our new food and extended health and beauty ranges which are driving further
profitability.

 

Across all our channels, we continue to focus on our key growth drivers: space
growth, increasing ATV and spend per passenger, driving EBIT margins and
benefitting from the growth in passenger numbers and customers. Momentum
remains particularly strong in Air where we are seeing good results, with
revenue growing ahead of passenger numbers.

 

                  Revenue 21 Weeks to 25 January 2025
                  Total               LFL(1)

                  versus              versus

                  2024                2024
 Air              9%                  9%
 Hospitals        8%                  4%
 Rail             5%                  4%

 Total Travel UK  7%                  7%

 

North America

 

In North America, revenue for the 21 week period was up 6% compared to the
prior year on a constant currency basis, and up 3% on a LFL basis.

 

Our Travel Essentials business, which is the largest and fastest growing part
of our North American division, delivered a strong performance with total
revenue on a constant currency basis up 20% and up 7% on a LFL basis, compared
to the prior year. We continue to actively analyse our space to enhance our
ranges, introduce new categories and review space allocation. This has
delivered encouraging results. We are seeing a number of good opportunities to
win and open more Travel Essentials stores in Air.

The performance of our smaller businesses, InMotion and Resorts has improved
with LFL revenue in the first 21 weeks down 1% and flat respectively.

 

Total revenue in North America reflects 10 store closures across two major
hotels in Las Vegas, which as previously announced have closed, and the
closure and refurbishment of 5 stores across Charlotte and Denver airports.
This is also part of the ongoing strategy to improve the quality of our store
estate and to focus our investment in higher growth airport Travel Essentials
stores.

 

The growth opportunities in North America are substantial and we are delighted
to now be able to announce 8 store wins at Orlando airport and a further 4 new
stores across Portland airport. We now have a pipeline of c.60 stores won and
yet to open.

                      Revenue 21 Weeks to 25 January 2025
                      Total         Total constant currency versus  LFL(1)

                      versus        2024                            versus

                      2024                                          2024
 Travel Essentials    17%           20%                             7%
 InMotion             (12)%         (9)%                            (1)%
 Air                  6%            9%                              4%
 Resorts              (8)%          (5)%                            -%

 Total North America  3%            6%                              3%

Rest of the World (ROW)

 

Total revenue for the 21 week period was up 16% on a constant currency basis,
compared to the prior year, and up 9% on a LFL basis.

 

In the Rest of the World, we remain well positioned to benefit from further
opportunities as more space becomes available.

 

High Street

 

In our UK High Street division, LFL revenue was down 3% compared to the prior
year in line with our expectations. We exited the Christmas trading period
with a clean stock position and we are on track to deliver our targeted full
year cost savings of £11m.

 

Share buyback

Further to the announcement from the Group on 11 September 2024 regarding a
£50m share buyback, as at 28 January 2025, the Group had purchased 1.4m
shares for cancellation for total consideration of £17.5m.

Outlook

We have made a good start to the financial year and, while there is some
economic uncertainty, we are confident of another year of good growth in 2025.

 

Interim Results Announcement

 

WH Smith PLC, the global travel retailer, will announce its 2025 Interim
results on Wednesday 16 April 2025.

 

Enquiries:

 
 
 

 WH Smith PLC
 Nicola Hillman  Media Relations     01793 563 354
 Mark Boyle      Investor Relations  07879 897 687

 Brunswick
 Tim Danaher                         020 7404 5959

 

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